2014 pudaily newsbits: middle east & africa · 2014 pudaily newsbits: middle east ......

Addivant Expands Saudi Arabian Facility【Mar. 20】

AkzoNobel Starts up Powder Coatings Facility in Dubai【Nov. 04】

Arabian Petrochemical Selects KBR for Services on Butadiene Plant 【Nov. 10】

Baalbaki Group Event Celebrates Distribution Exclusivity【Dec. 04】

BMS Opens Coatings, Adhesives and Specialties Lab. in Dubai【Mar. 12】

Bayer Pearl Builds up New System House in Dubai 【May 13】

Bayer Pearl Establishes New Headquarters in Dubai Investments Park 【Jun. 27】

Belgium's Ravago Acquires Turkish Polyurethanes Producer 【Mar. 12】

Dow Corning Opens Dubai Office 【Mar. 19】

Endress+Hauser Establishes Two New Sales Centers in UAE and Algeria【Jan. 02】

H.B. Fuller Company Agrees to Acquire Continental Products Limited 【Dec. 24】

ICL and Albemarle Partner to Set up Polymeric FR Joint Venture【Sept. 02】

ICL IP Starts Chemical Processing for Polymeric FR at Israel Plant【Nov. 25】

Joint Venture of SW and RSH Expands Coatings Services in ME【May 19】

Novomer Names Quimidroga Distributor of Polyols in Iberia and Turkey【Jul. 23】

SABIC Awards FEED Contract for Polyurethane Plant 【Mar. 20】

Sabic and Shell Cancel Sadaf JV Expansion 【Oct. 24】

Saudi Minister Slates State’s Sadara Stake for Sale 【Jan. 15】

Sadara Chemical Chooses Metso Valves for Saudi Chemicals Complex 【Jan. 21】

USD 19.3 Billion Sadara Plant 75% Complete Till Early Dec.

Sadara Complex to Increase Dow MDI Market Share【Mar. 25】

PetroRabigh Carried out 40 Days Maintenance at Propylene Oxide Plant【Apr. 25】

Saudi Arabia's PetroRabigh Swings to Q2 Profit on Higher Prices 【Jul. 18】

Saudi Aramco and Sumitomo Chemical to Integrate $8.5bn Project to PetroRabigh

【Aug. 05】

Saudi Aramco Plans $100 Bln Downstream Investments in Ten Years 【May 21】

Sipchem and Sahara Petrochemical Put $5.7bn Merger Plan on Hold 【Jun. 09】

Sipchem Opens New Saudi Cable Insulation Polymers Plant 【Mar. 05】

SUSTAINABILITY GIVES OPPORTUNITIES AND CHALLENGES FOR CHEMICALS

FIRMS IN THE MIDDLE EAST 【Mar. 18】 Note: click the title to jump into the content

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Your Trusted Polyurethane Market Advisor

2014 PUdaily Newsbits: Middle East & Africa

Addivant Expands Saudi Arabian Facility 【Mar. 20】

Addivant has announced the

completion of the first phase of capacity

expansions at Gulf Stabilizers Industries

(GSI), the company’s joint venture in Al

Jubaïl, Saudi Arabia.

Once completed, the production capacity of hindered phenolic

antioxidants, ANOX® 20 and ANOX® PP18 and phosphite antioxidant

ALKANOX® 240 will double to 10,500 metric tons.

GSI's Board of Directors also announced that plans are underway to

expand production capacity of the ANOX® NDB® product line to 24,000

metric tons per annum to meet growing customer demand for a range of

new, higher performing products.

GSI is a joint venture between Addivant and Zamil ChemPlast, one of

Saudi Arabia's leading industrial manufacturing companies.

ANOX® NDB® enables multiple polymer additives to be incorporated in

non-dusting physical forms. These forms are proven to increase

productivity, reduce production costs, advance final product quality, and

improve workplace health and safety. Using ANOX® NDB® also eliminates

the administrative and logistics costs of purchasing individual raw

materials.

AkzoNobel Starts up Powder Coatings Facility in Dubai 【Nov. 04】

AkzoNobel has started operations at its new

powder coatings plant in Dubai. The facility will

significantly increase capacity for the company's

Interpon and Resicoat products. The site is

AkzoNobel's sixth manufacturing plant in the

Middle East and its 30th producing powder

coatings around the world.

"This investment will further boost

AkzoNobel's position in the Middle East and

strengthen our ability to serve the fast-growing

regional powder coatings market," said Conrad

Keijzer, AkzoNobel's Executive Committee

member responsible for Performance Coatings.

The plant will target growing regional demand

for decorative powder coatings - particularly from

the architectural sector - as well as functional

products used in the oil and gas and construction

markets.

Commenting on the start of operations, Peter

Tomlinson, managing director of AkzoNobel Middle

East, said: "The new plant in Dubai underlines our

commitment to the Middle East, where our aim is

to continue to outgrow our competitors."

AkzoNobel has been bolstering its operations

in the region in recent years with a series of

strategic investments. In

2013, the company

acquired a 50 percent

stake and management

control in Sadolin Paints

Oman, a manufacturer of

decorative paints and performance coatings.

AkzoNobel is active in 15 countries in the Middle

East, where the company employs more than 800

people.

Contact Us

Tel: 0086-21-61250980

E-mail: [email protected]

Join us at Wechat:

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mailto:[email protected]

Arabian Petrochemical Selects KBR for Services on Butadiene Plant, Saudi Arabia 【Nov. 10】

Arabian Petrochemical Petrokemya has

selected KBR to provide front-end engineering

design services for a proposed expansion project

at its butadiene extraction facility in Al Jubail,

Saudi Arabia.

Under the contract, KBR will manage the

debottlenecking and expansion activities for the

project.

KBR president and CEO Stuart Bradie said:

"This contract award for the Petrokemya butadiene

debottleneck project demonstrates KBR's

world-class petrochemical execution and delivery

capabilities within the Kingdom of Saudi Arabia."

Built in 1993, the butadiene extraction facility

produces 123,000t annually.

Petrokemya, a wholly-owned subsidiary of

Saudi Basic Industries (SABIC), is planning to

expand production at the plant to cater to the

increasing demand in the downstream

petrochemical market.

The Petrokemya complex currently produces

about 5.15 million tons of petrochemicals,

including olefins, PVC/VCM, polystyrene and

polyethylene, as well as featuring utilities and

steam generation capabilities.

Financial terms of the contract have not been

disclosed.

KBR said it has included the expected revenue

from the contract in the third quarter of this year's

backlog of unfilled orders under its Hydrocarbons

business segment.

Earlier this week, KBR signed a deal to licence

CT-ACETICA technology from Japanese

engineering and construction firm Chiyoda.

Last week, the company's joint venture (JV)

with Rekayasa Industri, JGC and JGC Indonesia,

the RJK JV, was selected by BP to supply FEED

services on a third liquefaction train at its Tangguh

LNG Project in West Papua province, Indonesia.

Baalbaki Group Event Celebrates Distribution Exclusivity 【Dec. 04】

Hamriyah, United Arab Emirates — Middle Eastern polyurethane systems

and raw material supplier, the Baalbaki Group, held a spray foam seminar in

October.

Held at the company’s production facility, it welcomed around 65 guests

and representatives from Baalbaki Group and the Chinese equipment

producer JHPK.

The event was also held to

mark the consolidation of a

promising cooperation between

Baalbaki Group and JHPK while

launching a series of

water-based spray PU products.

During the day it was

announced that the Baalbaki Group is the sole agent for JHPK in the GCC (the

Gulf Cooperation Council), Levant & Africa.

3 / 19



BMS Opens Coatings, Adhesives and Specialties Lab. in Dubai 【Mar. 12】

ayer MaterialScience has

inaugurated its new coatings,

adhesives and specialties

laboratory at DuBiotech premises in Dubai, United

Arab Emirates. This application and development

lab will offer local customized technical support to

the industry across the Middle East and Africa.

DuBiotech is the major life science cluster in the

Middle East.

Focusing on key application areas like

construction, automotive, industrial, plastic, wood

and furniture coatings it will also lead to the

development of polyurethane coatings for diverse

high performance applications including sealants

for construction joints as well as airport tarmacs

and solvent free coatings for pipe applications. It is

also planned that the Laboratory will provide tailor

made solutions to the manufacturers of adhesives

and sealants for the transportation, construction,

furniture, packaging and shoe industries.

The lab will work in close cooperation with

Bayer’s global competence network having its

established laboratories and technical centers in

India, China, Japan, Russia, Brazil, USA, Spain and

Germany. DuBiotech, offering international standard

services and facilities, hosts the state-of-the-art laboratory that is equipped with advanced testing and

application equipment, meeting global standards and guidelines.

Marwan Abdulaziz Janahi, Executive Director of DuBiotech, said: "A report found that the coatings

market in the countries of the Gulf Cooperation Council is expected to grow by six percent annually over

the next five years. With this newly established laboratory, Bayer is well placed to make the most of this

opportunity.”

Bayer Pearl Builds up New System House in Dubai 【May 13】

Bayer Pearl, a polyurethane systems house

joint venture between Bayer MaterialScience AG

and Pearl Insulation Materials Industries LLC

established in 2007, plans a significant investment

including new technology and production.

Following the decision to relocate the regional

offices and production facilities to Dubai

Investment Park, Bayer Pearl has now engaged

Amana Contracting and Steel Buildings to build the

new state-of-the-art facility at the Investment

Park. The new facility is expected to be completed

in 2015.

The new site will feature research,

development, and application laboratories as well

as advanced manufacturing technologies and a

demonstration centre displaying the broad range

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of high-tech materials. Various high-tech

Polyurethane solutions will be showcased that

allow communities to cope with challenges such as

increasingly scarce natural resources, rising

mobility and growing urbanization.

Such trends can be met with polyurethane

foam, for instance to insulate buildings and

refrigeration systems, or for components that

make cars lighter, more fuel efficient and more

comfortable.

The ground breaking for the project is planned

in June 2014. "The Middle East is one of the fastest

growing economies in the world, and Dubai serves

as the ideal base for Bayer Pearl to further

strengthen our presence in the region. The new

site at Dubai Investments Park (DIP) will host

offices and operations of Bayer Pearl. DIP is

strategically located close to Jebel Ali Port and the

new Dubai World Central airport. Furthermore, the

new site allows us to expand our competence in

developing new applications and manufacturing

processes for our materials in close collaboration

with our customers" said Thorsten Eschmeier, CEO

of Bayer Pearl.

Under the strategic guidance of Bayer

MaterialScience, one of the leading manufacturers

of polyurethane raw materials worldwide, the joint

venture is integrated into their global network of

systems houses. Bayer Pearl provides high-tech

solutions for the needs of key sectors in the Middle

East region such as the construction Insulation,

District Cooling and Automotive industries.

Bayer Pearl Establishes New Headquarters in Dubai Investments Park 【Jun. 27】

The polyurethane systems house Bayer Pearl

has broken ground for construction of its new

headquarters in the Dubai Investments Park,

which will be the site of the regional offices and

state-of-the-art production facilities. The site will

feature research, development, and application

laboratories as well as a demonstration center for

the use of high-quality materials.

The construction contract has been awarded to

Amana Constructing and Steel Buildings, and the

work is scheduled for completion next year. Bayer

Pearl was established in 2007 as a joint venture

between Bayer MaterialScience AG and Pearl

Insulation Materials Industries LLC.

"The Middle East is one of the fastest growing

economies in the world, and Dubai serves as the

ideal base for us to further strengthen our

presence in the region," said Thorsten Eschmeier,

CEO of Bayer Pearl. "Our new site makes it

possible to expand our competence in developing

new applications and improved manufacturing

processes for polyurethane products in close

collaboration with our customers." The site at

Dubai Investments Park is strategically located

close to the port of Jebel Ali and the new Dubai

World Central airport.

Global network

The joint venture is part of the global network

of polyurethane systems houses of Bayer

MaterialScience, one of the leading manufacturers

of polyurethane raw materials worldwide. Bayer

Pearl develops high-tech solutions for the

insulation of buildings and piping, and for the

automotive industry.

5 / 19



Such challenges can be met with polyurethane

rigid foam, for example, which thanks to its

excellent thermal insulation properties makes an

important contribution to conservation of scarce

natural resources. Polyurethane materials also

make it possible to design cars that weigh less and

are therefore more fuel-efficient.

"We are delighted to welcome an international

company such as Bayer Pearl to enjoy the benefits

of the Dubai Investments Park, the premier

business park in the region which offers investors

everything they need to provide their enterprise

with the right environment for success," said

Khalid Bin Kalban, Managing Director and CEO of

Dubai Investments. "It is particularly pleasing to

see that Bayer’s innovative and sustainable culture

mirrors our own environmental objectives for the

DIP development."

Belgium's Ravago Acquires Turkish Polyurethanes Producer 【Mar. 12】

-based plastics supplier Ravago has further expanded its

already-strong presence in Turkey with the acquisition of Tekpol AS, a maker

of various polyurethane products.

Ravago Petrokimya, the petrochemicals branch of the Belgian group in

Turkey, which was formed in early 2014 with the merger of the three

previously separate companies, Eastchem, Enplast and Ravago Kimya, has

announced the deal worth EUR 36 million.

“Tekpol acquisition aims to strengthen our position in the local market.

Ravago has started negotiations regarding investments in polyurethane

distribution and production in the

Middle East, Russia and Gulf

countries”, Ravago Turkey CEO,

Mehmet Onur, said about the

acquisition.

One of the oldest plastics

producers of Europe, Ravago is

active with 8 companies in Turkey, employing over 800 people. Turkish

operations account for 10 percent of Ravago’s global turnover. The company

has invested EUR 70 million in Turkey during last year, both in production

operations and acquisitions.

Dow Corning Opens Dubai Office 【Mar. 19】

Dow Corning Corp. relocated its Middle East representative office to Dubai.

The firm said it is committed to bringing the benefits of its silicone

technologies, products and solutions to support companies across the Middle

East. The relocation will give customers improved access to Dow Corning and

Xiameter brands.

6 / 19



“The Middle East offers great growth

opportunities for Dow Corning across many

markets,” said Leo Kolaitis, operations director for

the Middle East, Turkey and Africa. “Our local sales,

marketing and technical support will drive the

current and future growth. The new location will

enable closer collaboration with customers

whether they need innovation or proven solutions

to grow their business.”

Dow Corning is headquartered in Midland,

Mich., and is a global leader in silicones and

silicon-based technology. The firm employs nearly

11,000 across the world and said it offers more

than 7,000 products to 25,000 customers

worldwide.

Endress+Hauser Establishes Two New

Sales Centers in UAE and Algeria 【Jan. 02】

With new sales centers Endress+Hauser will

open up further important growth markets in the

Middle East and Northern Africa. In early 2014 the

Swiss Group established subsidiaries in the United

Arab Emirates and in Algeria.

For two decades Endress+Hauser has been

represented in the United Arab Emirates (UAE) by

the local representative Descon Automation

Control Systems. Two years ago Endress+Hauser

also started a successful venture with Descon’s

local partner in Abu Dhabi. To optimize customer

support on the Arabian Peninsula, the

measurement engineering specialist now

integrates Descon’s Endress+Hauser business into

its own sales organization.

Endress+Hauser will now operate in the

market with two offices at locations in Abu Dhabi

(around 20 employees) and in Dubai (around 30

employees). Heavy investments in oil & gas, and in

developing the public infrastructure (saltwater

desalination plants, water storage, power stations),

have opened up a strong market for high-grade

measurement engineering and automation

solutions. The new sales center is also equipped

with resources for services, engineering and

project management.

The Managing Director of Endress+Hauser’s

sales center in the UAE will be Jens Winkelmann.

The 47-year-old graduate engineer in

measurement and control engineering has over 16

years’ experience with Endress+Hauser, for the

past five years working in Dubai.

Dedicated sales center in Algeria

Endress+Hauser also has opened a new sales

center in Algeria. From

offices in Algiers, a

team of five lead by

Managing Director

Chafik Amriou will take

care of customers,

particularly in the oil &

gas industry. Endress+Hauser expects its growing

business in Algeria to gain additional momentum.

Symes, Endress+Hauser’s long-time

representative located in Annaba, will continue to

serve particular customers in the eastern region of

Algeria.

7 / 19



H.B. Fuller Company Agrees to Acquire Continental Products Limited 【Dec. 24】

H.B. Fuller Company (NYSE: FUL) announced

on Dec. 23 that it has signed an agreement to

purchase Continental Products Limited, a provider

of industrial adhesives in East and Central Africa.

This business will generate approximately €2.3

million in revenue for the 2014 fiscal year. Based in

Nairobi, Kenya, Continental will be included in H.B.

Fuller's Europe, India, Middle East, Africa (EIMEA)

operating segment.

Founded in 1996, Continental works closely

with customers to develop high-quality adhesives

solutions for a wide range of industries, including

paper converting, printing and packaging, labeling,

laminating, bookbinding, automotive assembly,

footwear and construction. The addition of this

business will enable H.B. Fuller to capitalize on

access to local infrastructure in Kenya and to fully

leverage its broad-based technology portfolio

much more effectively in a strategically important

geography.

"With this acquisition, we will take a significant

step forward in our plan to grow in Africa," said

Steve Kenny, senior vice president, EIMEA, H.B.

Fuller. "H.B. Fuller has a strategic focus on growth

in emerging markets, and the Continental business

will enable us to deliver specialty adhesive

products to key customers in the East and Central

African regions. The Continental team has

developed extensive market knowledge and

exceptionally strong customer relationships, and

coupled with their local manufacturing capabilities,

H.B. Fuller will be able to further enhance

partnerships with its customers to develop and

produce new and better products for their

customers."

Continental has been H.B. Fuller's agent in the

region since 2003.

About H.B. Fuller: For over 125 years, H.B.

Fuller has been a leading global adhesives provider

focusing on perfecting adhesives, sealants and

other specialty chemical products to improve

products and lives. With fiscal 2013 net revenue of

$2.05 billion, H.B. Fuller’s commitment to

innovation brings together people, products and

processes that answer and solve some of the

world's biggest challenges. Our reliable,

responsive service creates lasting, rewarding

connections with customers in packaging, hygiene,

general assembly, electronic and assembly

materials, paper converting, woodworking,

construction, automotive and consumer

businesses. And our promise to our people

connects them with opportunities to innovate and

thrive. For more information, visit us at

www.hbfuller.com and subscribe to our blog.

8 / 19



ICL and Albemarle Partner to Set up Polymeric FR Joint Venture 【Sept. 02】

Albemarle and Israel Chemicals (ICL) have partnered to set up a joint

venture (JV) to produce

polymeric flame retardants

in the Netherlands and Israel.

The Netherlands facility will

produce 2,400t of ICL's

FR-122P and Albemarle's

GreenCrest polymeric flame

retardants, which will

replace

hexabromocyclododecane (HBCD).

Expected to commence operations in the fourth quarter of this year, the

Israel plant will have an annual production capacity of 10,000t.

HBCD is a widely used flame retardant in expanded (EPS) and extruded

(XPS) polystyrene foam applications, but the compound is being banned in the

European Union, Japan and other countries.

Albemarle and ICL said in a joint statement: "The joint venture will enable

additional capacity to be brought to the market to meet the growth needed for

the EU and the rest of the world following the phase out of HBCD from these

markets."

The companies will continue to offer independent marketing, sales and

technical service across the world in order to ensure a smooth transition of EPS

and XPS producers to the polymeric flame retardant.

Albemarle fire safety solutions vice president Troy De Soto said: "The joint

venture will allow Albemarle to continue providing its GreenCrest branded

product to customers while joining forces with a proven manufacturing partner

in ICL.

"The combined experience and know-how related to bromine and bromine

derivatives of Albemarle and ICL will ensure a reliable, high-quality alternative

offering to HBCD in the EPS / XPS segment."

ICL industrial products flame retardants vice president Ilan Elkan said:

"We are delighted to partner with Albemarle in increasing the availability of

our polymeric flame retardant offerings to the EPS and XPS industries.

"These polymeric flame retardants meet the highest regulatory demands

while better enabling the industry's transition from HBCD within the timeframe

established by EU regulators."

ICL IP Starts Chemical Processing for Polymeric FR at Israel Plant 【Nov. 25】

ICL Industrial Products (ICL IP) has commenced chemical processing at its

manufacturing plant in Israel for the production of FR-122P polymeric flame

retardants.

The company said that samples collected from the full-scale production

process at its pilot plant comply with product specifications and will now be

sent to customers for evaluation.

9 / 19



"The FR-122P flame retardant will replace ICL IP's HBCD flame retardant

product, which is currently used in EPS / XPS insulation foams." Filtration and

drying activities are underway at the facility.

ICL IP recently opened the Israel facility and is increasing plant activity to

commence commercial production of FR-122P.

The plant, which is expected to produce 10,000t of flame retardants each

year, complements the company's existing facility in the Netherlands.

The FR-122P flame retardant will replace ICL IP's HBCD flame retardant

product, which is currently used in EPS / XPS insulation foams.

HBCD will be phased-out of the market by August 2015, according to

European Union regulations.

The FR-122P development forms part of a licensing agreement between

Bromine Compounds, a unit of ICL IP, and Dow Global Technologies.

Earlier, ICL formed a joint venture with Albemarle to produce FR-122P and

Albemarle's GreenCrest polymeric flame retardant at its manufacturing plants

in the Netherlands and Israel.

ICL IP, an operating segment of ICL, manufactures various industrial

chemicals based on bromine, magnesia, chlorine and salts, and supplies

one-third of the world's elemental bromine. The company has a workforce of

2,500 worldwide.

Joint Venture of SW and RSH Expands Coatings Services in ME【May 19】

Sherwin-Williams has established a new

business in Saudi Arabia, expanding its services in

the Middle East. The joint venture, between

Sherwin-Williams and Saudi Arabia-based Red Sea

Housing Services Co., has launched Premier Paints

Co., which will serve customers in the busy

architectural, energy and construction sectors in

the region.

Premier Paints Co., which has unveiled its new

headquarters and manufacturing plant in Jeddah,

will support the distribution and sales of

Sherwin-Williams’ architectural and protective

coatings systems, including specialist products for

the structural steel and oil and gas industries.

(l-r: Chris Connor, chairman and CEO of

Sherwin-Williams, with His Excellency Amr

Abdullah Al Dabbagh, chairman of Red Sea

Housing Services Company, and His Excellency Dr.

Tawfiq Al Rabiah, Saudi Arabia’s minister of

commerce and industry)

Officially opened by His Excellency Dr. Tawfiq

Al Rabiah, Saudi Arabia’s Minister of Commerce

and Industry, the facility is supported by a dedicated technical team offering advice across the portfolio of

products and services.

10 / 19



Sherwin-Williams’ Protective and Marine

Coatings EMEA division is based in Bolton, UK, and

is part of the global Sherwin-Williams Co. It serves

sectors including civil construction, marine, energy,

fire protection and mining.

Red Sea Housing Co. provides diverse housing and logistics solutions, including permanent and

temporary housing complexes for employees of businesses operating in the oil and gas and mining sectors.

With a presence in more than 60 countries, it operates manufacturing facilities in the United Arab Emirates,

Africa and Saudi Arabia.

Novomer Names Quimidroga Distributor of Polyols in Iberia and Turkey 【Jul. 23】

Novomer Inc., a sustainable materials

company pioneering a family of high-performance

polymers and other chemicals from renewable

feedstocks such as carbon dioxide (CO2), has

named Barcelona-based Quimidroga s.a., a

leading distributor of specialty products, industrial

chemicals, and plastics, as an authorized

distributor of Converge® polypropylene carbonate

(PPC) polyols in Spain, Portugal, and Turkey.

Quimidroga will distribute commercial

quantities of Novomer’s new 1000 and 2000

molecular weight Converge® PPC polyols for use in

polyurethane formulations targeted at adhesive,

coatings, sealants, elastomers, and rigid and

flexible foams. The distribution agreement

represents Novomer’s commercial entry into

Quimidroga’s markets.

Quimidroga has a broad product portfolio

serving the polyurethane industry and is well

established in the Iberian Peninsula, according to

Shepard. Quimidroga will provide all support

services including technical marketing, account

management, application development, customer

service, warehousing, and logistics.

Converge® polyols are based on the

co-polymerization of carbon dioxide (CO2) and

epoxides and the resulting products contain more

than 40% by weight CO2. The use of waste CO2 as

a significant raw material yields a product with an

extremely low carbon footprint. In addition, since

waste CO2 is significantly lower in cost than

conventional petroleum-based raw materials,

Converge® polyol manufacturing costs are

favorable compared to conventional polyols when

produced at full commercial scale.

In terms of performance, Novomer's

Converge® polyols have a unique polycarbonate

backbone which increases the strength and

durability of polyurethane products. Incorporating

these new polyols into existing formulations yields

foams with higher tensile and tear strength, and

increased load bearing capacity; adhesives and

coatings with improved adhesion, cohesive

strength, and weatherability; and elastomers with

greater tensile and flexural strength.

11 / 19



SABIC Awards FEED Contract for Polyurethane Plant 【Mar. 20】

Saudi Basic Industries Corporation (SABIC) and Dutch Shell Group

awarded a contract for a jointly-owned polyurethane plant to be constructed at

the Saudi Arabia Petrochemical Company (Sadaf) complex in Jubail.

Engineering firm KBR won the front-end engineering and design (FEED)

contract for the complex and the project’s budget is expected to be $3 billion

(SR11.3 billion).

Currently planned units will provide the plant with the capacity to

produce toluene diisocyanate, methylene diphenyl diisocyanate, polyol, and

polyurethane.

Sabic and Shell Cancel Sadaf JV Expansion 【Oct. 24】

Saudi Basic Industries Corp and Royal Dutch Shell have cancelled plans to

expand an existing petrochemical joint venture in Saudi Arabia following

feasibility studies.

The two partners in the joint project, known as SADAF joint venture in

Jubail, on the Gulf coast of Saudi Arabia, first announced plans to explore an

expansion of their petrochemical plant in 2012.

'Shell and Sabic have agreed not to pursue this investment further but

have agreed to continue to have constructive discussions to explore other

opportunities for expansion,” a

Shell spokesman said in a

statement on Thursday.

"The results of the (feasibility)

studies were not encouraging to

carry out the project,” according to

a Sabic statement.

The expansion was due to add polyols, propylene oxide and styrene

monomer.

Saudi Minister Slates State Sadara Stake for Sale 【Jan. 15】

The Saudi Arabian government is considering selling part of its stake in the

Sadara joint venture with Dow Chemical, according to an unconfirmed press

report.

The report in Arab, News quoted Petroleum and Natural Resources

Minister Ali Al-Naimi as saying: “We will sell part of Sadara and Satorp [a

refinery] to citizens in the future at cost rate.” The minister was visiting Al

Jubail on 10 January 2014.

When it is commissioned, Sadara will be a world-scale integrated chemical

complex in the Jubail Industrial City II with capacity for isocyanates and

polyols when it is commissioned, according to the JV’s website.

12 / 19



Sadara Chemical Chooses Metso Valves for Saudi Chemicals Complex 【Jan. 21】

Technology and services supplier Metso has

received contracts from Sadara Chemical for

supply of its valves for Sadara's chemicals complex

in Saudi Arabia.

As part of the contracts, Metso will supply

Neles and Jamesbury valves to Sadara's fully

integrated chemicals complex currently under

construction in Al Jubail.

Metso will deliver automated control and

on-off valves, emergency shut-down valves, as

well as ball and butterfly valves equipped with

Neles ND9000 intelligent valve controllers.

The valves are up to two metres in diameter,

and will control process flow in several process

areas in the complex.

According to Metso, Neles metal seat and

Jamesbury soft seat technologies provide

dependable valve performance enabling reliable,

safe and efficient plant operations in petrochemical

industry applications.

The Sadara complex will manufacture more

than three million tons of high value specialty

chemical products and performance plastics per

year.

These will be used in transportation,

construction, packaging and containers, consumer

goods, adhesives and sealants, coatings, oil and

gas, and electrical and electronics industries.

Sadara Chemical is a joint venture between

Saudi Arabian Oil Company and The Dow Chemical

Company.

USD 19.3 Billion Sadara Plant 75% Complete Till Early Dec. “Sadara probably is the

planet’s most complex

engineering undertaking —

not just now, but at any time.

Whether its scale, complexity,

advanced technology or

economic and commercial

impact, it is in a league of its

own,” A. Al Falih said.

Saudi Aramco's president and CEO Khalid A. Al Falih

said in mid-Oct. that the $19 billion Sadara being built

alongside US-based Dow Chemicals was now more than 70%

complete, added by Ziad Al Labban, CEO of Sadara

Chemical Company (Sadara) at end Nov. that the project

has reached 75% completion and is proceeding on plan and

on schedule with best-in-class performance in safety.”

Al Falih at the CEO summit in Oct. described Sadara as

"probably the planet’s most complex engineering

undertaking — not just now, but at any time. Whether its

scale, complexity, advanced technology or economic and

commercial impact, it is in a league of its own.”

Al Falih said that the project has come a long way within

the past 12 months as one year ago it was just 30%

complete. “The next 30% is what people will remember:

how we finish, when we finish, and what the result is of the

facilities we finish.”

The project was initially launched in September 2011

construction started in two months with the bulk of the

funding being agreed over the past 18 months. Now, Sadara

Logo of Sadara

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http://www.pudaily.com/News/NewsView.aspx?nid=47976

is on track to deliver its first

products in the second half of

2015, with the complex in full

operation in 2016.

Chairman and CEO Andrew

Liveris said at the summit that it

already had commitment from

customers to take up 100% of

the plant's planned capacity.

Sadara is 70% owned by Saudi Aramo and 30% by Dow

Chemicals.

“We are right now rounding the corner and entering the

home stretch, and while our objective is closer than it was,

our steps forward are even more critical, requiring greater

determination and a higher level of cooperation among all

our partners,” Al Falih said. “If we can achieve that, we will

establish an industrial landmark that will contribute to

prosperity for generations to come.”

“Our industry is watching as we construct the most

incredible industrial complex of our time,” he said. “Once in

a career, once in a lifetime, you have the opportunity to do

something truly special,” Liveris said. “I will always

remember that I was involved in this special something —

that we, together, built Sadara into a force for human

progress.”

Sadara Complex to Increase Dow MDI Market Share【Mar. 25】

Dow has recently presented a report on current developments at the huge

Sadara facility, currently under construction in the port of Jubail, Saudi Arabia.

The plant is the largest integrated petrochemical site to be constructed at one

time.

114,000 t of steel, 700,000 m3 of concrete, 2,500 km of pipework, and

5,400 km of cable will be used in construction. The project is reported to be on

time, on budget, and with a Best in Class safety record, which is an incredible

achievement considering the project has mobilized 44,000 workers. The

utilities and cracker are reported to be 68 % complete and the isocyanates

plants are 48 % complete. The first plant will be ready to operate mid-2015

with full production expected during 2016.

When completed, the site will employ 3,862 staff, many of whom are

currently being trained at Saudi Aramco and Dow sites across the world. The

site will have 26 process

plants producing 3 million t

of products annually and

generating annual sales

revenues of USD 6 – 8

billion.

Sadara will be a game changer, according to Dow, as it is a fully integrated

site with basic materials going directly to a PlasChem Park for formulation and

compounding into higher value products. This also creates captive demand

through a secure and reliable supply chain.

Dow has estimated that its share of the global MDI market will increase in

Western Europe from 15 % to 16 %, in Middle East and Africa from 12 % to

15 %, in Eastern Europe from 27 % to 30 %, in Northern Asia from 4 % to 6 %

and in Southeast Asia from 11 % to 12 % once Sadara is operational.

14 / 19



PetroRabigh Carried out 40 Days Maintenance at Propylene Oxide Plant【Apr. 25】

PUdaily, Shanghai-Saudi Arabia PetroRabigh has shut down its propylene oxide facilities on Apr. 14 for 40 days scheduled maintenance, confirmed by wide

sources in China and it resumed production on May 16. The facilities have a nameplate capacity of 200 kt per year in Rabigh, Saudi Arabia.

Saudi Arabia's PetroRabigh Swings to Q2 Profit on Higher Prices 【Jul. 18】

Rabigh Refining and Petrochemical Co, PetroRabigh posted a

second-quarter net profit of Saudi riyal (SR) 172m ($46m), reversing a loss of

SR236.7m in the same period of 2013, boosted by higher prices and sales

volumes of its petrochemical products, the Saudi Arabia-based producer said

on Thursday.

The company posted a gross profit of

SR446.4m in the second quarter, reversing the

SR6.5m loss in the same period a year earlier, it said in a filing to the Saudi

stock exchange, Tadawul.

Petro Rabigh also reported an operational profit SR192.4m in April-June

this year, versus the SR210.9m loss in the same period of 2013, it added.

For the first six months of this year, the company swung to a net profit of

SR585m, versus the SR894.8m loss in the previous corresponding period.

to Integrate $8.5bn Project to PetroRabigh 【Aug. 05】 Saudi Aramco and Sumitomo Chemical

Saudi Aramco and Sumitomo Chemical have

agreed to integrate their proposed SAR32bn ($8.5bn) project, Rabigh II, into

their existing joint-venture (JV), Rabigh Refining and Petrochemical

(PetroRabigh).

The Rabigh II project is currently under construction and is an expansion

of PetroRabigh's existing petrochemical facility.

The latest decision is based on a due diligence study conducted by Petro

Rabigh for a comprehensive assessment.

The proposed plans require founding shareholders to secure project

finance loan approvals, ensure that the project will comply with all

government regulations and secure required permits.

The ownership transfer process is expected to be completed in the fourth

quarter of this year.

Located on Saudi Arabia's Red Sea coast, the project received a go-ahead

from the companies in 2012.

The Rabigh II project will use around 30 million standard cubic feet per day

of ethane and three million tons per year of naphtha as feedstock.

It will produce ethylene propylene rubber, thermoplastic polyolefin,

methyl methacrylate monomer, polymethyl methacrylate, low-density

polyethylene / ethylene vinyl acetate, para-xylene / benzene, cumene and

phenol / aceton, among others.

15 / 19



Petro Rabigh converts ethane gas to 1.3 million tons of ethylene each year

to produce easy processing polyethylene, linear low-density polyethylene,

high-density polyethylene and mono ethylene glycol.

Inviting Banks to Back JV Plant Expansion【Sept. 15】

Saudi Arabia's PetroRabigh's founding

shareholders have formally invited banks to

provide financing for the 32 billion riyal (US$8.5

bln) expansion of its petrochemicals complex in

the kingdom. No figures for how much cash would

be raised by PetroRabigh.

The requests for proposals were issued by the

parent firms to local and international banks, with

financing of the expansion to be split between

conventional loans and sharia-compliant facilities,

the bourse filing said.

The new facility, known as Rabigh II, is to be

built as an expansion of PetroRabigh's existing

petrochemical plant, increasing output and

introducing higher-margin products like ethylene

propylene rubber, thermoplastic polyolefin, methyl

methacrylate monomer and polymethyl

methacrylate among other products.

Saudi Aramco Plans $100 Bln Downstream Investments in Ten Years 【May 21】

Saudi Aramco has said its downstream

investments are expected to be more than $100

billion in the coming years, citing a surge in

demand for oil products.

The announcement was made by Saudi

Aramco CEO Khalid Al Falih at the ongoing Middle

East Petrotech 2014, a Middle East refining and

petrochemicals conference and exhibition, held in

Bahrain.

Al Falih said: "Globally, these investments will

exceed $100 billion over the next decade alone and

that is premised on our belief in the long-term

sustainability of oil demand.

"As a result of both global demographic growth

and rising standards of living in the developing world,

we see global demand for oil growing by a quarter

over the next 25 years."

In the coming years, Aramco expects refining

capacity of eight million to ten million barrels per day.

Aramco has been seeking to strengthen its

presence in the petrochemicals segment, and it is

currently carrying out two major projects.

In a joint-venture with Dow Chemical, the company is constructing a $20bn Sadara petrochemical

complex in Jubail, which is expected to commence operations in the second half of 2015.

Aramco is expanding the PetroRabigh petrochemical complex, which is jointly owned with Sumitomo

Chemical.

16 / 19



Al Falih added: "That will take our total

chemicals participate production capacity to more

than 15 million tons per year."

Sipchem and Sahara Petrochemical Put $5.7bn Merger Plan on Hold 【Jun. 09】

Saudi International Petrochemical (Sipchem)

and Sahara Petrochemical have shelved their plans

to merge operations, which would have created a

chemical company with $5.7bn market value.

In December 2013, Sipchem and Sahara

signed a memorandum of understanding (MoU) for

the proposed share-swap merger and expected to

sign a deal in the first half of 2014.

The companies said in a statement that

although the proposed transaction is in the interest

of shareholders, it would not proceed under the

current regulatory regime and both companies will

continue to exist whilst achieving operational

integration.

At this stage, the parties have agreed to

continue their operations independently and

without liaising. However, there is a possibility of

reviving the commercial negotiations in the future.

The decision to put on hold the merger plans is

not expected to affect the operations of the two

companies, they added.

Established in 1999, Sipchem manufactures

and markets methanol, butanediol,

tetrahydrofuran, acetic acid, acetic anhydride,

vinyl acetate monomer and carbon monoxide.

The company caters to the construction,

solvents, automotive, electronics, polymer,

coatings and pharmaceutical industries.

Sahara Petrochemical is a Saudi joint stock

company engaged in the production of propylene,

polypropylene and polyethylene.

Sipchem Opens New Saudi Cable Insulation Polymers Plant 【Mar. 05】

Gulf Advanced Cables Insulation, an affiliate of Saudi International

Petrochemical (Sipchem), has commissioned a new production facility at

Sipchem's complex in Jubail Industrial City, Saudi Arabia.

The SAR230m ($61m) facility will manufacture cable insulation polymers

used to fabricate electrical cable insulation materials.

The plant, which is part of Sipchem projects' third phase development

program, is expected to help the company to meet national and international

demand for the product.

International Polymers, a Sipchem affiliate, will supply raw materials,

namely low-density polyethylene and ethylene vinyl acetate, required for the

project.

Gulf Advanced Cables Insulation, which is a joint-venture between

Sipchem and Korea-based Hanwha Chemicals, will market the products in the

Middle East and Europe.

17 / 19



The market for construction

chemicals is becoming ever more

complicated, particularly in the

Middle East where producers have to

contend with a new wave of

environmental codes and standards

to make sure than their products

remain on the right side of best

practice.

As a result, there is also a

growing need for more sustainable

versions of existing products, or

even a new range of chemicals that

can help buildings to run more

efficiently and improve the overall

performance of a structure.

As reported, the GCC’s

Construction Chemicals market

forecasts a compound annual growth

rate of 4.8% until 2018, driven by

demand for more high-performance

chemicals.

Zakia Bahjou, general manager

of advanced materials for Dow

Chemicals, admitted the chemicals

industry in the GCC needed to move

quickly in order to keep up with

changing regulations, particularly

surrounding energy efficiency and

sustainability.

“Construction chemicals

contribute heavily to the support of

this, and there are a number of

innovations that can significantly

help to reduce energy usage inside

and outside of a building or

structure.”

She added that she expected

new products to develop “at a rapid

pace in order to meet the demands of

the region’s construction sector and

the sustainable requirements being

continually enforced by authorities”.

This was a view shared by John

Sarkis, BASF Middle East’s general

manager.

The German chemicals group’s

sales to the construction industry

represent 5-10% of global revenues.

Construction chemicals hold a

minor share in the total chemicals

market both in the GCC region and

worldwide, but increasing innovative

products such as

environmentally-friendly adhesives

and sealants made from biopolymers

are positively affecting their growth.

The UAE and Saudi Arabia lead

the way in construction chemicals

consumption among the GCC

countries, followed by Qatar.

And with the winning of the

World Expo 2020 bid, Dubai is

expected to witness a fast pace of

construction and expansion of hotels,

airports and the railways network.

Similarly, Qatar will be hosting the

FIFA World Cup in 2022 and had

$222bn worth of projects planned or

underway by 2013.

18 / 19



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